It's illegal: Shops can't ask you to pay more tax on discounted items
The District Consumer Disputes Redressal Forum in Chandigarh has once again ruled that shops cannot charge extra value added tax (VAT) on items sold on discounted price, saying that by doing so they are "indulging in unfair trade practice". Penalising Benetton India Private Ltd, the forum, presided by Rajan Dewan, observed: "The act of Benetton in charging VAT on discounted product clearly proves deficiency in service, having indulged into unfair trade practice on their part, which certainly had caused immense mental and physical harassment."
The four-page order, signed on September 25, clearly mentioned that a similar question arose earlier for the determination of VAT before this commission twice -- first in 2015 and later in the corresponding year. VAT was charged on consumer goods before the Goods and Services Tax came into being on July 1.